Accounts Receivable Factoring Services - Get All The Facts

If your business cannot obtain bank financing but generates quality accounts receivables, receivable funding can be an ideal temporary solution to solve your daily working capital needs. Delivered promptly, professionally, and most important confidentially.

Business Owners & Managers, we offer accessible working capital without the hassles of getting bank loans. Approvals within hours!

Accessing accounts receivable factoring services simply requires a business to be providing products or services to creditworthy businesses on credit terms.

What Is Accounts Receivable Factoring?

Accounts receivable factoring (aka receivable funding) is a commonly used financial transaction where a B2B business sells its outstanding receivables to a factoring company (aka factor) at a discount to obtain immediate working capital.

Regardless of your current financial condition, personal credit rating, or business history, factoring accounts receivable allows you to quickly and easily access your funds tied up in unpaid invoices within 24 hours without the usual red tape associated with traditional financing solutions.

When you are factoring account receivables, you are getting cash advances against the face values of your outstanding invoices. The only deduction that comes out of your proceeds is the small discount rate charged by the factor. The receivable balance is deposited directly into your bank account within a few hours of approving the invoice.

The great thing about factoring finance is that there is no need for you to have great credit. We base the critical decisions in receivable funding transactions on the financial strength of your client base. No matter how bad things seem to be going for your company, as long as you have outstanding receivables with creditworthy clients, then you have the cash flow you need to do business.

Is this the same as receivable financing?

No. Contrary to receivable financing and loans, accounts receivable factoring does not create debt for your business. When you are factoring invoices, you are selling a current asset to the factor. When you use receivable financing, you get a loan that uses accounts receivables as collateral. Receivable factoring and invoice financing look like the same product, but as you can see, they have a completely different impact on your company's balance sheet. Choose wisely.

How does this compare with traditional bank loans or bank lines of credit?

Bank credit products, such as business loans, credit cards, and lines of credit can have very different access requirements than factoring. Traditional lenders evaluate your credit background when deciding if you qualify for funding or not. Also, when business borrowers get money from business lenders, must pay back the outstanding balances due plus interest according to some agreed payment terms.

Invoice factoring providers do not care about your business credit scores and don't have payment schedules. Some websites confuse people talking about factoring loans. Don't be deceived; this service is not a business loan but the purchase of receivables in exchange for cash advances.

What Are Receivable Factoring Companies?

Receivable factoring companies are financing companies that give growing businesses tremendous advantages over bank loans, private investors, or friends and family.

These companies buy outstanding receivables issued by B2B businesses that provide products or services and offer payment terms to clients.

Factors are not lenders, and they do not purchase delinquent or bad debt.

More about factoring companies.

How Much Does Accounts Receivable Factoring Cost?

The cost of factoring is calculated by applying a factoring rate, usually between 1 % and 3% every 30 days to the outstanding receivable value. The actual rate your business can get depends on several factors. You can learn about costs and business factoring fees here.

Non-recourse factoring is more expensive than factoring with recourse because the factor assumes the default risk in nonrecourse arrangements. The assumption of this additional credit risk increases the invoice factoring fees you'll be required to pay.

This article explains recourse and nonrecourse factoring in detail.

Accounts Receivable Factoring is Easy with Our Factoring Company

Step One: Speak With a Decision Maker Today

Dial our number 1-855-424-2955, email us, or submit a quote request. We’ll connect you with an Underwriter (no slick salesmen, factoring brokers or clueless call center representatives) who will listen to your situation and determine if we have a program that will work for both of us. Our Underwriters are seasoned professionals in the factoring industry and can make immediate and binding decisions from the first phone contact.
Upon receipt of your completed application, the same Underwriter will review and evaluate your information within 1 hour and either ask clarifying questions or provide you with a comprehensive written factoring agreement proposal for your review. There’s no commitment on your part.
Upon receipt of the closing documents, we will quickly open your account, and you can start factoring receivables within three business days with the peace of mind of knowing you’ll have the additional funds you need to support your businesses.

Step Two: Accounts Receivable Funding is a Simple Process

You will continue to invoice your customers as usual.
You determine which customers to factor and which invoices to sell.
When you’re ready to access your funds, please send us a copy of the invoices and include supporting documents (purchase contracts, time-sheets, delivery receipts, etc.). Generally, within 24 hours of receipt of those documents, we’ll buy your invoices, pay your advanced amounts and wire your funds directly into your business checking account.
Yes, the funding process is that simple!

Step Three: Customer Payments & Reporting

In your customers' ordinary course of business, they will continue to make checks payable to your business but will be mailed to a special lockbox so we can collect the amounts due. This keeps the factoring relationship confidential.
Each day, we sweep the lockbox and post the payments received from your customers.
Every Thursday we release your reserve balance on collections, allowing you to close out the client debt in your accounting software fully.
You will have 24/7 access to a factoring platform that offers various reports our software generates, allowing immediate access to invoices sold, invoices collected, your reserve balance, and many other management reports.

Take the Next Step and Grow Your Business. Talking with a Decision Maker can make all the difference in solving working capital problems professionally.

Call 1-855-424-2955 to speak to our managing director.

Factor Your Receivables With Our Commercial Finance Company

Our company offers:

Factoring facility lines up to 10 million dollars.
Factor invoices your way: submit only the customers and receivables you want.

Transparent Invoice Factoring Costs

Competitive discount rates begin at 1% for the first month.
Advance rates from 95% (98% for transportation).

Recourse and non-recourse factoring agreements

Your credit score does not matter.
Flexible credit terms.
Low requirements & flexible financing arrangements.
24-hour accounts receivable funding.
No long-term contracts are required.
No monthly minimums.
60k minimum annual revenue.
We don't buy bad debt.

Please take a minute to request a quote or give our managing director a call at 1-855-424-2955 for immediate and personalized attention. Once you sign up for our factoring program, you can begin factoring invoices and get access to funds within 24 hours from the setup.

Who Can Benefit From Accounts Receivable Funding?

Now let's look at the type of situations where you can take advantage of receivables funding.

A Small Business or Start-Up With Weak Cash Flow

When entrepreneurs decide to make the big move and start companies, they usually secure enough funds for the first six months of operations. After the start-up money runs out, if there is not enough cash flow from customers paying their bills on time the new companies get in trouble. More often than not, the new company runs the risk of going out of business.

A lender won't help in this situation because of the startup's inconsequential credit history. Instead of worrying about how you will keep your small business afloat, you need to gather up your outstanding receivables and get in touch with our company.

Companies With Poor Credit

Business bad credit is like a snowball rolling down a snowy mountainside. By the time it reaches the bottom, it is an unstoppable boulder of ice and snow. When your business credit score is low, the bankers are usually unwilling to lend you the money you need to keep going. That is when you get involved with receivables funding and let your outstanding receivables pave the way to success.

Growth Is Outpacing Cash Flow

Your company has toiled for years and now you are finally seeing significant financial growth. Things are so great that your orders are coming faster than your customers' payments. A banker can refuse to lend you working capital due to your tenuous cash position. But, as long as you have outstanding invoices, a receivable funding company will get you the money you need and keep that cash rolling in.

Companies That Are Just Recovering From Financial Trouble

If your company has just come out of bankruptcy or has tax liens hanging over like a storm cloud, it will be impossible to get operating cash from a bank. But a factor can buy your outstanding invoices and get your company back on its feet.

A receivable funding company is the kind of financial provider that you need when it feels like you have no other options. Contact us today and let us show you what we can do for your business.

Article Author: Marc J. Marin